GORENJE, d.d., Velenje

Pesnica Acid Tar Pit Rehabilitation Contract Signed

Ljubljana, 5 December 2005 - Mr Janez Podobnik, Minister of the Environment and Spatial Planning (contractor/co-financier), Mr Marko Kryžanowski, President of the Petrol Management Board (contractor/co-financier), and Mr Žiga Debeljak, Member of the Gorenje gospodinjski aparati, d.d., Management Board (contractor), today signed the contract for the rehabilitation of the acid tar pit in Pesnica.

Tenders for the rehabilitation of the Pesnica acid tar pit were called in 2004. Having reviewed the bids received, the commission, which included representatives of the Ministry and Petrol, selected Gorenje of Velenje as the best bidder.

The rehabilitation entails the removal of 17,500 tonnes of acid tar and 7,000 tonnes of contaminated topsoil, which involves onsite solidification of acid tar and the transport of the solidified waste abroad for incineration.

The value of the contract for the rehabilitation of the entire Pesnica complex amounts to SIT 2,268,000,000. The financial resources for the rehabilitation project will be provided from the long-term ecological reserves of Petrol (app. 1.2 billion tolars) and from the government budgetary funds collected from environmental levies i.e. the so-called oil tolar (approximately one billion tolars).

The rehabilitation is expected to take two years. Before the works can get underway, however, the investor still has to acquire the building permit and pay all spatial intervention damages due.

The public announcement will be also available on the www.gorenje.com web-site.

Date: 6. 12. 2005